Genuine Parts Company reported its 2024 third quarter financial results on Oct. 22, which showed a modest year-over-year sales increase that was supported by acquisitions and a favorable foreign currency impact. Meanwhile, sales slid further at its industrial parts subsidiary, Motion.
Industrial Parts
GPC reported that 3Q sales at Birmingham, AL-based MRO supplies distributor Motion totaled $2.2 billion, down 1.2% year-over-year. The decline was attributed to a 2.4% decrease in comparable sales, despite a 1.3% benefit from acquisitions. Sequentially, the 3Q sales figure was flat compared to 2Q24’s its 1.1% decline. 3Q sales were down 1.9% year-over-year in North America and up 6.9% in Australasia.
Meanwhile, Motion’s 3Q segment profit decreased by 8.5% year-over-year to $259 million, with a profit margin of 11.8% that was down 100 basis points.
Motion was ranked No. 2 on MDM’s Top Distributors List for Industrial Supplies, No. 2 for MRO, No. 1 for Power Transmission/Bearings, No. 3 for Fluid Power and No. 2 for Hose/Hose Accessories.
Automotive
GPC’s Automotive segment — which does business as NAPA Auto Parts — reported global sales of $3.8 billion for 3Q24, a 1.2% decrease from the previous year. This growth was driven by a 0.9% increase from an additional selling day in the U.S. Segment profit fell by 18.6% to $262 million, with a profit margin of 6.9%.
Overall
GPC reported overall sales of $6.0 billion for the third quarter of 2024, a 2.5% increase from the previous year. Net income for the quarter was $227 million, down from $351 million a year earlier. Adjusted net income was $263 million, down from $351 million the year prior.
“Our results were below our expectations, primarily driven by continued weakness in market conditions in Europe and our Industrial business,” GPC President and CEO Will Stengel said in company’s financial release. “While the external environment remains challenging for the balance of 2024, we expect the combination of near-term actions and long-term investments to better position us when market conditions improve.”
2024 Outlook
GPC revised its full-year 2024 guidance. The company now expects total sales growth of between 1% to 2%, down from the previous forecast of 1% to 3% issued after 2Q24. Automotive sales growth is expected to range from 3% to 4%, and Industrial sales is projected at -2% to -1%. The company maintains its forecast for net cash provided by operating activities at $1.3 billion and free cash flow at $800 million to $1.0 billion.
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